📊 URBN Key Takeaways
Is Urban Outfitters Inc. (URBN) a Good Investment?
Urban Outfitters demonstrates revenue growth (11.1% YoY) but concerning operational deterioration: net income is flat despite revenue expansion, and critically, the company is burning negative free cash flow of -$177.8M while operating cash flow of $15.5M falls far short of net income, signaling severe cash conversion issues. Although the balance sheet is fortress-like (Debt/Equity 0.05x), the company is deploying $193.2M annually in capex without generating adequate returns (ROE 4.4%, ROA 2.4%), indicating capital efficiency breakdown.
Urban Outfitters Inc. Key Strengths (URBN)
- Revenue growth of 11.1% YoY demonstrates market demand
- Fortress balance sheet with minimal leverage (Debt/Equity 0.05x) and strong interest coverage (28.4x)
- EPS growth of 18.8% outpacing net income growth shows effective capital allocation through buybacks
- Cash position of $301.4M provides runway to address operational challenges
URBN Stock Risks: Urban Outfitters Inc. Investment Risks
- Negative free cash flow of -$177.8M is unsustainable; company burning cash despite reported profitability
- Operating cash flow of $15.5M severely disconnected from net income of $115.7M indicates quality-of-earnings concerns or working capital deterioration
- Net income flat (0% YoY) despite 11.1% revenue growth signals margin compression and deteriorating operational leverage
- Extremely low returns on capital (ROE 4.4%, ROA 2.4%) indicate capex spending of $193.2M is not generating adequate returns
- Quick ratio of 0.78x below 1.0 suggests inventory dependency; potential liquidity stress excluding inventory
Key Metrics to Watch
- Operating cash flow vs. net income gap—must narrow to sustainable levels
- Free cash flow trend—cannot remain negative; target should be positive FCF within 2-3 quarters
- Return on invested capital and capex productivity—must demonstrate capex is generating returns above cost of capital
- Gross and operating margin trends—watch for stabilization as revenue scales
Urban Outfitters Inc. (URBN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Urban Outfitters Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
URBN Profit Margin, ROE & Profitability Analysis
URBN vs Consumer Sector: How Urban Outfitters Inc. Compares
How Urban Outfitters Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Urban Outfitters Inc. Stock Overvalued? URBN Valuation Analysis 2026
Based on fundamental analysis, Urban Outfitters Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Urban Outfitters Inc. Balance Sheet: URBN Debt, Cash & Liquidity
URBN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Urban Outfitters Inc.'s revenue has grown significantly by 36% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.05 reflects profitable operations.
URBN Revenue Growth, EPS Growth & YoY Performance
URBN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.3B | $108.3M | $1.16 |
| Q3 2025 | $1.4B | $102.9M | $1.10 |
| Q2 2025 | $1.4B | $117.5M | $1.24 |
| Q1 2025 | $1.2B | $61.8M | $0.65 |
| Q3 2024 | $1.1B | $37.2M | $0.40 |
| Q2 2024 | $1.2B | $59.5M | $0.64 |
| Q3 2023 | $1.1B | $37.2M | $0.40 |
| Q2 2023 | $1.2B | $59.5M | $0.64 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Urban Outfitters Inc. Dividends, Buybacks & Capital Allocation
URBN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Urban Outfitters Inc. (CIK: 0000912615)
📋 Recent SEC Filings
❓ Frequently Asked Questions about URBN
What is the AI rating for URBN?
Urban Outfitters Inc. (URBN) has an AI grade of C with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are URBN's key strengths?
Claude: Revenue growth of 11.1% YoY demonstrates market demand. Fortress balance sheet with minimal leverage (Debt/Equity 0.05x) and strong interest coverage (28.4x).
What are the risks of investing in URBN?
Claude: Negative free cash flow of -$177.8M is unsustainable; company burning cash despite reported profitability. Operating cash flow of $15.5M severely disconnected from net income of $115.7M indicates quality-of-earnings concerns or working capital deterioration.
What is URBN's revenue and growth?
Urban Outfitters Inc. reported revenue of $1.5B.
Does URBN pay dividends?
Urban Outfitters Inc. does not currently pay dividends.
Where can I find URBN SEC filings?
Official SEC filings for Urban Outfitters Inc. (CIK: 0000912615) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is URBN's EPS?
Urban Outfitters Inc. has a diluted EPS of $1.30.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is URBN's fundamental grade?
Based on our AI fundamental analysis in June 2026, Urban Outfitters Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is URBN stock overvalued or undervalued?
Valuation metrics for URBN: ROE of 4.4% (sector avg: 18%), net margin of 7.8% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is URBN's AI grade for 2026?
Our dual AI analysis gives Urban Outfitters Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is URBN's free cash flow?
Urban Outfitters Inc.'s operating cash flow is $15.5M, with capital expenditures of $193.2M. FCF margin is -12.0%.
How does URBN compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 7.8% (avg: 8%), ROE 4.4% (avg: 18%), current ratio 1.48 (avg: 1.5).